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Facebook, Adobe Systems, PayPal Lead Stocks Near Buy Points With Rising Earnings Estimates: S&P 500 Futures | Stock News & Stock Market Analysis

Futures for the S&P 500 index were little changed late Thursday after the major averages continued their 2018 win streak. Facebook (FB), Adobe Systems (ADBE), IPG Photonics (IPGP), PayPal (PYPL), Weibo (WB) and Atlassian (TEAM) are highly rated tech companies with rising profit estimates and are approaching buy points.

Chart reading is crucial to successful investing, but ultimately earnings drive stocks higher. Facebook, Adobe Systems, IPG Photonics, PayPal and Weibo are all on the Rising Profit Estimates stock list. All are expected to deliver solid earnings gains. Rising profit expectations suggest the underlying business has momentum, which may not be fully priced by the market.

These stocks also all have best-possible Composite Ratings of 99. The Composite Rating combines several IBD proprietary ratings of fundamental and technical factors. All-time stock winners often have Composite Ratings of 95+ near the start of their runs.

S&P 500 index futures rose a fraction vs. fair value. So did Nasdaq 100 and Dow futures.

Facebook

Facebook earnings likely surged 56% to $1.94 a share in the fourth quarter, according to the latest analyst consensus at Zacks Investment Research.

Facebook just cleared a 184.35 flat-base buy point on Wednesday.

Facebook’s breakout had clear flaws. Volume was about average. You want to see at least 40%-50% above-normal trade when a stock breaks out. Meanwhile, the relative strength line, which tracks the stock vs. the S&P 500 index, was well below its Nov. 1 high. In fact, the RS line has not made much headway since late July.

On Thursday, Facebook dipped 0.2% to 184.33, dropping just below its buy point.

Adobe Systems

Adobe Systems is expected to report a 28% earnings per share gain to $1.15 for its next quarterly report.

The stock hit a record 186.27 on Nov. 28, then tumbled as low as 165.68 by Dec. 5, undercutting its 50-day moving average. Shares of the digital publishing software giant  hovered above or below that support level for the rest of 2017. Adobe has surged back above its 50-day in 2018, rising 4.6% so far, including a 1.2% gain to 183.22 on Thursday. The gains have been in lower volume though.

Adobe is less than 2% below a 186.37 flat-base buy point.

IPG Photonics

The industrial laser maker should deliver a 25% EPS gain to $1.74.

IPG Photonics tumbled from record highs in late November and early December. Shares then began to rebound, but for the rest of 2017 held below its still-rising 50-day line. IPG retook its 50-day line on Tuesday and then kept rising, ending Thursday at 236.81, up 1.5% for the session.

The stock is still working on a cup base that won’t reach the minimum six weeks until Friday’s close. Assuming it does so, IPG would have a potential buy point of 248.33.

PayPal

The online payments processor is expect to report profit of 52 cents a share, up 24%.

PayPal has been consolidating in a flat base since peaking on Nov. 27. After finding support at the 50-day line over several sessions, PayPal jumped 3.9% on Wednesday. Shares closed Thursday at 76.73, some 3.5% below a 79.48 entry.

Payments stocks remain strong. Mastercard (MA) broke out on Thursday, but in light volume. Visa (V) and American Express (AXP) also hit highs in below-average trade. Square (SQ) reclaimed its 50-day line.

Weibo

Weibo is expected to report a 71% EPS gain to 58 cents.

The Chinese short-message social media giant has rallied 12.4% so far this week to 116.21, rebounding from its 50-day line. Like IPG Photonics, Weibo needs another day to reach the minimum six weeks for a cup base. But if Weibo can consolidate to the end of the week, it will have a 123.10 potential buy point.

*Here’s a bonus stock from the Rising Profit Estimates list that’s near a buy point.*

Atlassian

Atlassian (TEAM) should turn in a 33% increase to 12 cents.

Shares of the collaboration software maker surged above the 50-day line in heavy volume, offering a possible buying opportunity for aggressive investors. Atlassian rose 2.4% to 51.60 on Thursday, approaching a 53.55 buy point from a consolidation going back to mid-November.

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